Niti Aayog Virmani promotes Chinese investment in Indian manufacturing
ECONOMY & POLICY

Niti Aayog Virmani promotes Chinese investment in Indian manufacturing

Arvind Virmani, a member of Niti Aayog, suggested that India should encourage Chinese firms to invest and manufacture goods locally rather than continuing to import them. His comments followed a pitch from the pre-budget Economic Survey on July 22, which proposed attracting foreign direct investment (FDI) from China to boost local manufacturing and enhance the export market.

Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs.

With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies.

China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion.

Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit.

(ET)

Arvind Virmani, a member of Niti Aayog, suggested that India should encourage Chinese firms to invest and manufacture goods locally rather than continuing to import them. His comments followed a pitch from the pre-budget Economic Survey on July 22, which proposed attracting foreign direct investment (FDI) from China to boost local manufacturing and enhance the export market. Virmani explained that if India is going to import goods from China for the next decade or more, it would be more beneficial to have Chinese companies establish operations in India and produce these goods domestically. This strategy, he noted, would align with the broader economic trade-offs. With the US and Europe moving away from sourcing directly from China, Virmani argued that having Chinese companies invest in India could help the country tap into these markets more effectively. The Economic Survey emphasised that focusing on FDI rather than solely relying on trade could be a promising approach for boosting India?s exports, similar to strategies used by East Asian economies. China is currently India's largest trading partner, with bilateral trade amounting to $118.4 billion in the fiscal year 2023-24. However, India has seen minimal FDI from China, which holds only a 0.37% share of the total FDI inflow. Tensions between the two nations, particularly after the Galwan Valley clash in June 2020, have impacted their economic relations. Despite these tensions, trade has continued to grow, with India's exports to China rising by 8.7% to $16.67 billion last fiscal year, while imports increased to $101.7 billion, widening the trade deficit to $85 billion. Virmani believes that focusing on Chinese investment could be more advantageous for India than relying on imports, helping the country to better integrate into global supply chains and reduce its trade deficit. (ET)

Next Story
Resources

RentenPe and Mygate Partner to Transform Rent Payments in India

Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India’s first Rent Credit Score™ platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe’s payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..

Next Story
Real Estate

Supreme Unveils New Brand Identity to Elevate Lifestyle

Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group’s refreshed vision to ‘Elevate Lifestyle’. This brand transformation represents more than a visual refresh—it marks a strategic shift in the company’s mission, visual identity and market positioning. The update will be visible across all of Supreme’s digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..

Next Story
Infrastructure Urban

Capri Loans Launches #TarrakiKeHaath Campaign Honouring India’s Everyday Heroes

Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India — from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans’ long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat’s economy. Conceptualized by Rediffusion Brand Solutions, the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?